SM Co Net debt/EBITDA
What is the Net debt/EBITDA of SM Co?
The Net debt/EBITDA of SM Energy Co is 2.46
What is the definition of Net debt/EBITDA?
The net debt to earnings before interest, taxes, depreciation, and amortization (Net debt/EBITDA) ratio measures financial leverage and the company’s ability to pay off its debt. It shows how long it would take the company to pay off all its debt with operations at the current level.
The net debt to EBITDA ratio is calculated as Net debt divided by EBITDA. It is similar to the debt to EBITDA ratio, but cash and cash equivalents are subtracted in net debt.
Net debt = short-term debt + long-term debt - cash and cash equivalents
EBITDA = net income + interest expense + taxes + depreciation + amortization
Lower debt debt to EBITDA ratio indicates the company is not heavily indebted and should be able to repay its obligations. Alternatively, higher ratio indicated the company is excessively indebted. The ratio varies between industries as different industries have different capital requirements. Usually, the ratio should be compared to a benchmark or an industry average to determine the company’s credit risk. Generally, a net debt to EBITDA ratio above 4 or 5 is considered high.
Net debt/EBITDA of companies in the Energy sector on NYSE compared to SM Co
What does SM Co do?
sm energy company is an independent energy company focused on the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in the united states. the company was founded in 1908, incorporated in 1915, and became a public company through an initial public offering in 1992. sm energy trades on the new york stock exchange under the symbol sm. the company operates in four core areas managed by four regional offices: the mid-continent, rocky mountains, permian basin, and gulf coast regions are operated out of our offices in tulsa, oklahoma; billings, montana; midland, texas; and houston, texas, respectively. each office is staffed with a full complement of geologists, geophysicists, engineers, and landmen who have extensive experience in the region or basin where they work. the denver, colorado, headquarters provides financial and administrative support for the regional operations. at sm energy, we also take seriously the manner in which we conduct our
Companies with net debt/ebitda similar to SM Co
- Deere has Net debt/EBITDA of 2.45
- Universal Biosensors has Net debt/EBITDA of 2.45
- Bioline Rx Ltd has Net debt/EBITDA of 2.45
- ChampionX has Net debt/EBITDA of 2.45
- Incitec Pivot has Net debt/EBITDA of 2.45
- Apogee Enterprises has Net debt/EBITDA of 2.46
- SM Co has Net debt/EBITDA of 2.46
- Alpine Summit Partners has Net debt/EBITDA of 2.46
- Adherium has Net debt/EBITDA of 2.46
- BioLargo has Net debt/EBITDA of 2.46
- Semiconductor Manufacturing International has Net debt/EBITDA of 2.46
- Azure Minerals has Net debt/EBITDA of 2.46
- dormakaba AG has Net debt/EBITDA of 2.47